Refer to the figure below. If Column Cruises offers reduced rates, and Row Resorts keeps its rates high, then Row Resorts will earn ______, and Column Cruises will earn ______.
A)300; 300
B)50; 50
C)500; 10
D)10; 500

Question

Refer to the figure below.  If Column Cruises offers reduced rates, and Row Resorts keeps its rates high, then Row Resorts will earn ______, and Column Cruises will earn ______.
A)300; 300 
B)50; 50 
C)500; 10 
D)10; 500

Quizplus · Accepted Answer

In the given table, when Column Cruises reduces their rates and Row Resorts keeps their rates high, they earn $500 and $10 respectively. The best choice for Column Cruises is to reduce their rates, as they earn a higher profit of $500 compared to $300 or $50. The best choice for Row Resorts, on the other hand, is to keep their rates high, as they earn a profit of $10 which is higher than -$100 or -$200. Therefore, the best choice overall is D, where Row Resorts keeps their rates high and Column Cruises reduces their rates.

Refer to the Figure Below